Judgment

R. M. SAHAI, J.:- Manufacturers of Steel ingots, out of iron and steel melting scrap with aid of electric arc furnace, challenged notices issued under Central Excises and Salt Act, 1944 for short levy on clearances of Runners and Risers and claimed that as they, too, were steel ingots or Melting Scrap they were liable to same duty as was payable on ingots, therefore, the notices issued to them were liable to be discharged.

2. Runners and Risers are solidified moulten metal in refractory channel leading to casting or ingot mould. The Tribunal (Customs Excise and Gold Control Appellate Tribunal found that since they are found in narrow channel and they are not of any predetermined size of devised for producing solidified material for any particular use they  could not be considered as ingots. They were held to be scrap. And the claim of exemption or concessional rate of duty was not accepted as it could not be extended to scrap.

3. Tariff Item No. 26 of the Schedule to the Act during relevant period read as under:

"Steel ingot including steel melting scrap."

From March, 1969 onwards various notifications were issued exempting or levying duty on concessional rate on steel ingot manufactured with the aid of electric furnace provided the manufacture was done in the manner provided in the notifications. Since steel melting scrap was not mentioned doubt arose if the exemption under the notification issued from time to time extended to the entire entry of Tariff Item No. 26 or it was confined to steel ingots. The Board clarified it by saying that, "description of the Item No. 26 read as "Steel Ingots including Steel Melting Scrap". The notification referred to above, therefore should be read in the context of the Tariff description and not in isolation. Thus, the exemption contemplated in the aforesaid Notification relates not only to Steel ingots but also to Steel melting scrap arising in Electric furnace units." Effect of this was that the Government of India, even, in exercise of its power as quasi-judicial authority held in Century Iron and Steel Ltd., 1982 ELT 761, that runners and risers obtained during manufacture of steel ingot was also exempt from the date of notification issued in 1979. Details furnished by the department in pursuance of order passed by this Court further shows that Runners and Risers have not been subjected to levy in some States and even refund has been allowed in some cases.

4. Effort of appellants learned Counsel was to assail order of the Tribunal on test of user. It was urged that Runners and Risers being solidified moulten metal in process of manufacture in the channel and the better one being subjected to same use as ingot, namely for rolling, their clearance as ingots was in accordance with law and the notices issued for short levy were liable to be discharged. For the defective one, that is not fit for rolling, it was claimed that it was melted as scrap and since it was produced out of steel melting scrap no manufacturing activity could be said to be involved in it and it did not attract any duty. Learned Counsel urged that steel melting scrap attracted duty only when it was produced out of material other than melting scrap for instance, iron ore etc. He submitted that excise duly on Runners and Risers could be charged only if they were taken as ingots and not as steel melting scrap. Reliance was .placed on clarification issued by Ministry of Finance in January 1979 that Notifications issued granting exemption to ingots applied to steel melting scrap rising in electric furnace unit. Whereas the learned Solicitor General submitted that.. it is well-settled that the burden to prove exemption lies on the person who claims it. Since exemption under notification was available to ingot only it could be extended to it and it only and to no other item by implication. He submitted that Runners and Risers could not be termed as ingots and since the exemption or concessional rate of duty was available to i